Our wine and fruit industries are facing a R1.2 billion loss this year. The fuel increases will place a further R915 million bill on the sector due to the weakening rand.
The Chairperson of the Standing Committee on Economic Opportunities, Tourism and Agriculture in the Western Cape Provincial Parliament, will invite the key major retailers to brief the committee on the consequences of the drought for them and their consumers.
Farms are taking strain with the disastrous drought, increased minimum wage and increased costs due to the weakening Rand. Agri Western Cape says that they have not received any assistance from national government, as promised. Thus far they have only received aid from the Western Cape Department of Agriculture.
The increased minimum wage is not a major concern for most Western Cape farmers, because they are already paying 24% higher salaries than the second best province in South Africa. Small emerging farmers, however, are struggling to meet the target. Potato yields will drop from the normal 2.5 million tons to about 2.2 million tons this year. This is one of many food staples that will cause food prices to increase. The increasing food prices hurt the vulnerable the most, as inflation is now being pushed towards 8% because of rising food costs.
This crisis is already causing serious damage and stands to become a complete disaster if national government does not take it seriously. We must make every effort to save the job-creating agricultural sector and our farms.
